Brickability Group has announced its acquisition of the Taylor Maxwell Group, a suppliers of timber and non-combustible cladding to the construction industry.
Taylor Maxwell & Co Ltd was founded by Mr E. Maxwell and Mr. R. Taylor in 1959 and commenced operations merchanting bricks and timber from offices in Bristol. Although still remaining within the group, in 1977 the brick and timber operations were separated and Taylor Maxwell Timber Ltd was formed. In 2019 the company came at number 107 in the Annual Sunday Times Grant Thornton Top Track 250.
The firm operates from 16 regional locations across the UK, with minimal overlap with Brickability’s existing client base. The most recent additions to its operations are new product showrooms at the Hop Exchange in London Bridge, in Birmingham City Centre, and in Glasgow City Centre. Earlier this year, it acquired SBS Cladding LTD, a distributor and fabricator of decorative rainscreen cladding systems.
The Brickability Group, which includes Crest, Crown Excel, DSH Flooring, McCann roofing products, and Frazer Simpson doors and windows, had a turnover of £187 million in 2020. By comparison Taylor Maxwell enjoyed a £250 million turn over last year, which means the deal will more than double the size of Brickability.
The operation, which is the 11th acquisition of import made by Brickability since 2018, and was made possible through a sale of shares, will cost £63 million. Brickability Directors and management will retain a shareholding of approximately 28.3% in Brickability, down from approximately 54%.
The oversubscribed sale of of new and existing shares raised £93 million, £52.7 million of which that will be used to fund the acquisition of Taylor Maxwell and future bolt-on acquisitions.
The deal is expected to be formally ratified at a shareholders meeting on 29 June 2021.
John Richards, Chairman of Brickability, said: "As Brickability continues to grow, this acquisition marks a significant expansion in the range of solutions we can deliver for our growing client base and represents a significant value-add for our Shareholders.
"The team continues to identify and evaluate opportunities as we continue to deliver the IPO promise, retaining focus on diversification and expansion.
"Over the years, Taylor Maxwell have acquired a wealth of local market knowledge, enabling them to build strong professional relationships with a diverse range of key manufacturers.
"The acquisition of Taylor Maxwell will bolster Brickability’s leading position in UK brick distribution; offering cost and revenue synergies while being transformational in terms of the group’s scale and relevance in the wider materials supply industry.
"The Acquisition has been well supported by our existing shareholder base, and the oversubscribed Placing has benefited Brickability by welcoming a range of new institutional shareholders to the Brickability register."
Alan Simpson, Chief Executive Officer of Brickability, said: "Taylor Maxwell is a business we have earmarked for acquisition since IPO as we believe the union will bring significant short and long-term benefits to both companies and customers.
"Access to Taylor Maxwell’s longstanding relationships, distribution channels and local knowledge will greatly improve Brickability’s access to the UK marketplace while also delivering procurement, revenue and structural synergies.
"We look forward to welcoming the Taylor Maxwell team to the Brickability Group and building an even stronger business in 2021."
Martin Rudge, Managing Director at Taylor Maxwell, said: "Taylor Maxwell's management team view the transaction as an exciting new chapter in the history of the business, one that they feel will benefit its employees, customers and suppliers alike.
“We are very proud of what has been achieved over the last sixty years and how the business has developed into the company it is today. Growth in recent times has been organic and this transaction is seen as a great opportunity to develop the business further as part of a larger organisation.